Chestnutt v. Horizon Air Industries, Inc.

133 F.R.D. 154, 1990 U.S. Dist. LEXIS 16132, 1990 WL 191518
CourtDistrict Court, E.D. Washington
DecidedJuly 12, 1990
DocketNos. CS-90-0058-JLQ, CS-90-0043-JLQ
StatusPublished

This text of 133 F.R.D. 154 (Chestnutt v. Horizon Air Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chestnutt v. Horizon Air Industries, Inc., 133 F.R.D. 154, 1990 U.S. Dist. LEXIS 16132, 1990 WL 191518 (E.D. Wash. 1990).

Opinion

MEMORANDUM OPINION AND ORDER SETTING REASONABLE COSTS AND ATTORNEYS’ FEES

QUACKENBUSH, Chief Judge.

This matter came regularly on for hearing by the court for a determination of the reasonable costs and attorneys’ fees to be paid by the plaintiff as a sanction under Rule 11 of the Federal Rules of Civil Procedure pursuant to a prior ruling of the court. See Ct.Rec. 21. As requested in the previous order, the defendants have filed affidavits and supporting documentation setting forth their claimed hourly rates and the time spent in defending this action, see CtRecs. 23-24, and the plaintiff has filed a responsive memorandum and affidavit, see Ct.Recs. 25-26.

Applicable Law

When Rule 11 sanctions take the form of an award of attorneys’ fees, the sums awarded are limited to “those expenses and fees that were reasonably necessary to resist the offending action.” In re Yagman, 796 F.2d 1165, 1185 (9th Cir.1986). The measure of the award is one of reasonableness, as determined by the court, and is not the amount actually expended. Id. “Implicit in this [concept] is the duty to mitigate.” Id.

Because fee determinations involve matters that essentially are factual in nature, the district court has broad discretion to fashion an award that is reasonable. D’Emanuele v. Montgomery Ward & Co., 904 F.2d 1379, 1384-85 (9th Cir.1990). The Supreme Court has adopted a two-part test to focus the court in exercising that discretion. See Hensley v. Eckerhart, 461 U.S. 424, 437, 103 S.Ct. 1933, 1941, 76 L.Ed.2d 40 (1983).1 As stated in Hensley, the court must first calculate a “lodestar” amount by multiplying the number of hours reasonably expended on the litigation by a reasonable hourly rate. Id. This calculation is critical because there exists a “strong” presumption that the lodestar amount represents a reasonable fee. United States v. Phelps Dodge Corp., 896 F.2d 403, 406 (9th Cir.1990). Next, the court may increase or decrease the loadstar fee based on those factors identified by the Ninth Circuit in Kerr v. Screen Extras Guild, Inc., 526 F.2d 67, 70 (9th Cir.1975), cert. denied, 425 U.S. 951, 96 S.Ct. 1726, 48 L.Ed.2d 195 (1976), that have not been subsumed in the lodestar calculation. Cunningham v. County of Los Angeles, 879 F.2d 481, 487 (9th Cir.1988). These upward or downward adjustments, however, are the “exception rather than the rule.” D’Emanuele, 904 F.2d at 1383. If adjustments are made, either in arriving at the lodestar or in applying a multiplier, the court must provide a “concise but clear” explanation for its decision. Id. at 1384-85; Phelps Dodge, 896 F.2d at 406.

The Kerr factors, mentioned above as guidelines for determining the reasonableness of attorney fees, include:

(1) the time and labor required, (2) the novelty and difficulty of the questions involved, (3) the skill requisite to perform the legal service properly, (4) the preclusion of other employment by the attorney due to the acceptance of the case, (5) the customary fee, (6) whether the fee is fixed or contingent, (7) time limitations imposed by the client or the circumstances, (8) the amount involved and the results obtained, (9) the experience, reputation, and ability of the attorneys, (10) the “undesirability” of the. case, (11) the nature and length of the professional [156]*156relationship with the client, and (12) awards in similar cases.

Kerr, 526 F.2d at 70. As stated above, however, many of the Kerr factors are subsumed within the initial calculation of the lodestar amount. See Blum v. Stenson, 465 U.S. 886, 898-900, 104 S.Ct. 1541, 1548-1550, 79 L.Ed.2d 891 (1984). The subsumed factors are: the novelty and complexity of the issues, the special skill and experience of counsel, the quality of the representation, the results obtained, and the superior performance of counsel. D’Emanuele, 904 F.2d at 1383-84; Wood v. Sunn, 852 F.2d 1205 (9th Cir.1988). In rare and exceptional cases, those Kerr factors that are not subsumed may support an adjustment to the lodestar amount, provided the court identifies the factors used and explains its rationale. Cunningham, 879 F.2d at 487.

Finally, in the context of Rule 11 sanctions, at least two other considerations have been found to be relevant in establishing the reasonableness of the fee amount: (1) misconduct on the part of the party seeking sanctions that may have contributed to the protraction of the lawsuit; and (2) the sanctioned party’s ability to pay the award. See Yagman, 796 F.2d at 1185.

Discussion

In this case, defendant Horizon seeks an award of $8,174.00 in attorneys’ fees, representing 67.3 hours of work at rates ranging from $95.00 per hour to $210.00 per hour. Horizon also requests costs in the amount of $732.00. The remaining defendant, Vanguard Ventures, shows an outlay of 48.4 hours of attorney time at rates ranging from $105.00 per hour to $135.00 per hour for a total fee of $5,244.00. Costs claimed by Vanguard amount to $403.43.

The court finds that the instant action was anything but complex. Each party involved in this case was represented and present in a prior action that was dismissed on summary judgment. Sanctions were imposed in this case because the present complaint, a veritable carbon copy of the one filed and dismissed previously, was found to be frivolous.2 Thus, not only were the attorneys here intimately familiar with the underlying facts, but the defendants’ task amounted to the filing of a simple motion to dismiss based on established and relatively straightforward res judicata principles. It appears that Horizon took the bulk of that responsibility by filing the petition for removal and the motion to dismiss. Vanguard merely submitted joinder motions—such filings amounting in length to less than a page in each instance.

After considering the detailed affidavits of the defendants in light of the factors and legal principles discussed above, the court finds that Horizon’s fees and costs, in the total sum of $8,906.00, represent a fair and reasonable compensation for the proportionate effort extended in defending this action. The plaintiff does not appear to contest the reasonableness of the claimed hourly rates and the court finds the hourly rates, the time expended, and the costs to be reasonable. Thus, defendant Horizon is HEREBY AWARDED fees in the amount of $8,174.00 and costs in the amount of $732.00 for a total award of $8,906.00.

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Related

Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
Kerr v. Screen Extras Guild, Inc.
526 F.2d 67 (Ninth Circuit, 1975)
Toombs v. Leone
777 F.2d 465 (Ninth Circuit, 1985)
Wood v. Sunn
852 F.2d 1205 (Ninth Circuit, 1988)
Cali v. Japan Airlines Co.
425 U.S. 951 (Supreme Court, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
133 F.R.D. 154, 1990 U.S. Dist. LEXIS 16132, 1990 WL 191518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chestnutt-v-horizon-air-industries-inc-waed-1990.